Wednesday, October 21, 2009

Emirates Islamic Bank integrates Emcredit services to efficiently manage risk

Dubai, October 21, 2009: In a move to enhance its risk management policies, Emirates Islamic Bank (EIB) has signed an agreement with Emcredit to avail of its credit information reporting services. This announcement was made today by Emcredit, the UAE’s first government-backed credit bureau.

Through Emcredit’s Credit Scope, which provides factual records of a company’s or individual’s credit history, EIB will gain an accurate perspective on its borrowers’ repayment history as well as their capability to service new and existing debts. This will enable EIB to make more informed lending decisions, improve services to its existing customers and tailor products and services based on the credit history of its customers.

Ali Ibrahim, Managing Director, Emcredit, said: “We are very pleased to announce this partnership with Emirates Islamic Bank, which demonstrates the value that Emcredit can bring to Islamic financial institutions in managing their credit books and credit expansion. With provisions for bad loans rising, it has become imperative, now more than ever, to closely assess a borrower’s credit behaviour.”

Faisal Aqil, General Manager, Retail Banking of EIB, said: "Risk management is central to Islamic banking as well as our growth and expansion strategy. An accurate and comprehensive perspective on the credit habits of potential and existing borrowers positions us to tailor our solutions for the benefit of customers.

“Today, risk mitigation through collective efforts will greatly benefit the banking and finance sector in the country. EIB calls for greater information sharing and increased transparency to mitigate risk and enhance risk management practices.”

Established in June 2004, and part of the Emirates NBD Group, EIB provides a wide range of Islamic personal, commercial and investment banking products and services.

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